According to Pakistan’s “Business Record” report, well-informed sources said that Pakistan’s Ministry of Textile Industry plans to extend the 15% regulatory tax policy on cotton yarn exports that was originally scheduled to expire on July 26, 2010 by 2 months to September 2010. On March 27, in order to facilitate the country’s high value-added textile sector to smoothly obtain production raw materials against the backdrop of rising global cotton and cotton yarn prices.
People in the Pakistani spinning industry are deeply uneasy about this, saying that the above-mentioned policy extension may put the spinning industry on a path of no return. People in the textile industry believe that due to the snowstorm in 2010 that affected China’s cotton production, global cotton and cotton yarn international market prices will remain high in the next quarter. It is recommended that policymakers and textile-related departments and people formulate a joint strategy as soon as possible to avoid cotton yarn The crisis continues. Analysts believe that the most effective way is for the government to provide financial support to the high value-added textile sector to offset the impact of high cotton yarn prices at home and abroad.
